- LINK was down by more than 1% in the last 24 hours.
- Most metrics and market indicators remained bearish.
Chainlink [LINK] witnessed a price correction last week, like most other cryptos, thanks to the bearish market condition. However, if the latest analysis is true, Chainlink’s future might change soon in the coming days as a bullish pattern formed on the token’s chart.
Realistic or not, here’s LINK’s market cap in BTC’s terms
Chainlink to break the chains soon?
Rekt Capital, a popular crypto trader and analyst, recently pointed out that Chainlink’s price had fallen sharply. Interestingly, soon after the descent, LINK’s price action went sideways.
The Macro Downtrend is over
But can Chainlink secure a successful retest to fully confirm the breakout?#LINK #Crypto #Chainlink pic.twitter.com/mB6kIvmbyS
— Rekt Capital (@rektcapital) October 8, 2023
However, if a trendline is to be considered, LINK could go above the resistance level, initiating a massive bull run.
As per the above tweet, LINK was exiting its macro-downtrend and soon could enter a bull rally. If that turns out to be true, then LINK investors can enjoy massive gains. As of now, LINK has been down by more than 1.3% in the last 24 hours.
At the time of writing, it was trading at $7.59 with a market capitalization of over $4.2 billion. A closer look at the token’s metrics provided a better understanding of what might be ahead.
This can be expected from Chainlink
As per CryptoQuant, LINK’s exchange reserve was decreasing, meaning that the token was not under selling pressure at press time. However, despite a drop in selling pressure, LINK’s Exchange Inflow was considerably high. A few other metrics also looked bearish.
For instance, the MVRV ratio was down. LINK’s Network Growth also dropped slightly, meaning that fewer new addresses were created to transfer the token.
Source: Santiment
While this happened, LunarCrush’s data pointed out that bearish sentiment around the token spiked by more than 76% last week. Its AltRank also decreased, suggesting that the token’s price might plummet even further in the days to come.
Not only that, but most market indicators also favored the sellers.
Read Chainlink’s [LINK] Price Prediction 2023-24
For example, the MACD displayed a bearish crossover. Chainlink’s Chaikin Money Flow (CMF) and Relative Strength Index (RSI) both registered downticks and were headed towards the neutral mark, increasing the chances of a continued southward movement.
Nonetheless, the Bollinger Bands revealed that after being in a highly volatile zone, LINK’s price was entering a slightly less volatile region. Therefore, the degree of harm might be minimized.
Source: TradingView
